Polling companies have been warned by MPs they could face tougher regulation after lucrative data was sold to hedge funds before the June 2016 EU referendum.
A number of funds made big bets against the pound based on exit poll data which was not available to the wider public. Sterling subsequently fell sharply after the unexpected result came in, netting large windfalls for those who correctly predicted the result.
Nicky Morgan, chair of the influential Treasury Select Committee, has written to British Polling Council president Sir John Curtice expressing concern that the sale of private polling data threatens to undermine the integrity of financial markets.
The warning follows a report by Bloomberg on the sale of private data by YouGov, Survation and ICM prior to the Brexit vote.
Former UKIP leader Nigel Farage also came under scrutiny after he conceded defeat seconds after the polls closed in the referendum before the result was known, despite apparently being in possession of data which suggested the nation had voted to leave the EU. Mr Farage has previously worked as a commodity trader and currency broker.
Funds paid many times in excess of the normal rate for polling in the run-up to the vote having seen the exchange rate movements after the Scottish Independence referendum and realising the profits that could be made.
The pound was trading above $1.50 on the eve of the vote, before tumbling to $1.32 when it became clear that Leave was to emerge victorious.
“The integrity of UK financial markets is a key concern of the Treasury Committee, and the Bloomberg report raises concerns in this regard,” Ms Morgan said.
“During election and referendum campaigns, polling companies present themselves as neutral observers of public opinion. Yet behind the scenes, they are selling private polling data to hedge funds to make profitable trades.
“It's understandable why polling firms are attracted to this more lucrative private work. But there is a perverse commercial incentive to provide misleading information to the public, whilst providing more accurate - and lucrative - analysis to private clients.”
The Tory MP is calling on the British Polling Council to modify its rules so pollsters are forced to inform respondents to polls that the information they supply may be used to help private clients to make money.
In addition, polling firms would have to disclose, when publishing or discussing published polls, whether they have conducted similar work on behalf of private clients.
Under her proposals, they would have to disclose whether published polls have been conducted free of charge, or at a discount to the usual fee such work would attract.
